A blog on issues affecting Australia's newsagents, media and small business generally. More ...

The problems with magazines from newspaper publishers

With more newsagents now trading as retail only newsagents and receiving newspapers as sub agents, there will be a great reluctance for newspaper publishers to take on more magazine distribution work.

With magazines at 25% margin struggling to pay their way I can see no upside in taking on magazines with a margin of 12.5%.  With shopping centre rent priced more than $1,000 per square metre, every magazine pocket has to justify itself.  At 12.5% this can’t happen.

This will be an issue if newspaper publishers take on the distribution of more magazines.

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magazine distribution

Is God really Dead?

is-god-dead.JPGNow that’s what I call a provocative magazine cover!   I realised the opportunity as soon as I saw Philosophy Now and placed it in one of the magazine pockets on our main newspaper stand.  I think it is important that we react to magazine covers which will generate interest, discussion and, yes, sales.  We need to be opportunistic at every chance we get.

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magazines

Harper’s Bazaar needs double the space

fhn_bazaar_jul10.JPGOut of necessity we have devoted two full columns to the latest issue of Harper’s Bazaar.  It was either that or store stock in the back room as there is way too much bulk for the usual space allocation.  The doubling of real-estate allocation means doubling the operational costs for the title – not that the publisher will care since we are not paid for real-estate.  Yes, I am annoyed.  A national retail chain required to double space allocation for a publisher would want compensation.  To create this space we have to trim space for other titles.  Hopefully, the free notebook and pencil with the title generate sales to make it worth it.

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magazines

Promoting Top Gear magazine

fhn_topgear_jul10.JPGThe simple in-location display promoting the latest issue of Top Gear is the fourth in a row we have done for the title.    Everyone entering the men’s magazine aisle sees this display.  Since it is working for us we don’t see any reason to change.  Sure, we will do the occasional counter or newspaper stand display but these usually run only for a few days.  It is this in-location display which works best for us.

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magazines

Schapelle Corby the cover girl selling New Idea

schapelle-corby.JPGThe Schapelle Corby cover story on New Idea has encouraged us to pitch this week’s issue next to our main newspaper stand.  We know from our sales history that Schapelle sells magazines in our area so it makes sense to chase impulse business with our tactical placement.  I expect to see people who would not usually purchase New Idea do so on the basis of our placement with newspapers.

We also have New Idea on offer near our main lottery counter as well as in its usual location with weekly magazines.

We will leave this display next to the newspaper stand in place until Friday.

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magazines

Promoting new look Burke’s Backyard

fhn_burkes_jul10.JPGWe are promoting the new look Burke’s Backyard in a high traffic area of the store – where newspaper, magazine and other customers will see the title.

The cover looks terrific and certainly draws attention.  Inside, the magazine looks refreshed.

We are using both sides of the display in the photo which stock available from each.

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magazines

50% success with OzLotto jackpot upsell

jackpot-50mil.JPGOur Sunday team found that 50% of the time they offered a ticket in the OzLotto jackpot they were successful.  The offer was only put to customers at the counter who had not purchased an OzLotto ticket.  Knowing the hit rate is encouraging to others on  the team since they know that 50% of times the offer is put they should expect to get the extra business.

While Tattersalls prefers to manage by regulation, I’d prefer to see more research on upsell techniques and results.  Better information should drive better outcomes for use as retailers and Tattersalls and the  supplier.

In the meantime, the OzLotto $50 million jackpot is driving some excellent lottery and other business for us.

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Lotteries

A complaint about magazine browsers

One of our customers complained yesterday about browsers in the magazine aisle who were blocking his access to the magazine he wanted to purchase.  He reminded us that we are not a library and advised that we should stop the browsing.

When I heard about this is made me smile.  While it is true that we are not a library, I would rather have happy browsers than an empty shop.  It’s my job as a retailer to do everything possible to convert the browsers into customers.

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magazines

Mythbusters book popular

mythbusters-book.JPGThe Mythbusters book is provingg to be popular in our mid-year book sale.  The $9.95 price point is good and the brand well known.  At our Forest Hill store we no longer run a mid-year stationery sale, the book sale works far better for us.  The external marketing drives new traffic and the terrific yet simple sale display drives excellent impulse purchases.

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Book retailing

Conde Nast opens up on iPad subscription plans

In a casual video interview after the unveiling of Gourmet Live, Bob Sauerberg Conde Nast’s publisher’s group president of consumer marketing talked to Stacy Kramer of paidContent about the their plans for the iPad and in particular the just Gournet Live and Wired. Watch as he talks about plans to leverage the 90,000+ who purchased the first edition of Wired on the iPad.

This is a fascinating interview up close with a US magazine publishing insider.

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magazines

iTunes giftcards an easy sale

itunes-giftcards.JPGWe have ramped up our promotion of iTunes gift cards since they are the best connectuon we currently have to the iPad and iPod.  The specially made and visually catching posters are facing out into the mall to promote that we sell the cards.  The iTunes gift cards work well with greeting cards.

This is one poster from a series of posters designed to promote a broader range of product than what the average shopper may expect to see in a newsagency.

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Newsagency opportunities

Promoting Justin Forever at the counter

justin-forever.JPGWe have Justin Forever at the counter for this weekend.  We also have it in with our weeklies as well as with teen magazines.  At a couple of my stores the counter location is already working well for this title.  While the $8.95 could be a stretch for the younger shopper, I am hoping that the counter location works for mum, dad and other adults who may buy it as a treat or gift for a fan.

Our current plan is to leave Justin Forever up until Wednesday.

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magazines

Plenty of the F111 magazine

f111.JPGWe received plenty of stock of the F111 title which went on sale yesterday.  Not sure why.  It gets two weeks to see if it warrants space and time in my store.  While I am all for range as a point of difference, there are some titles we are sent via the push model which I would not take on – having regard to space and other constraints.

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magazines

Network set to take on NDD Australian titles

Mediaweek this morning reported that Network Services is moving to support Australian publishers who have been using NDD for magazine distribution.

No mention of the international titles in the Mediaweek report.  Maybe these will end up at Gotch – this would be a natural fit.

Newsagents will be watching Network and Gotch to see that the changes result in a more efficient assortment of titles.  One excuse put by distributors to newsagents in the past was that they did not know what newsagents were getting from the other two.  Now, there is one less to be concerned about.

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magazine distribution

Apple sells 3 million iPads, Murdoch calls it a fantastic invention

Appe has announced that it has sold more than 3 million iPads in 80 days.  That is an extraordinary number.

On the device itself and similar devices to follow, News Corp. CEO Rupert Murdoch was predicting a bright future in New York this week:

“This is a fantastic invention,” he said. “It combines the ability to present all forms of media to all people, from three year old children to 100 year old men.” He added: “I believe that within five years, you’ll have many hundreds of millions of iPad or iPad-like devices in the world. This is a huge new market.”

Business Week has the full story.

As I have taken my iPad around the country and shown it is newsagents over the last couple of weeks, it is interesting to see the reaction and to participate in the conversations which follow.  I’ll have some more to say on that next week.

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Media disruption

Intralot punched again by Herald Sun

The Herald Sun yesterday ran another negative Intralot story as is their want.  Intralot Action CEO issues a statement to the retail network to clarify their position.

My view is that the state government seriously botched the handling of the Intralot licence by not addressing the dedicated area committed in retail outlets for Tattersalls products.  That said, Intralot has not done themselves any favours with slow equipment and unpopular online games except for keno which is improving.  Their advertising of scratchie products is working a treat.

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Lotteries

The challenge of one-shot fanzines

twilight-fanzines.JPGLike most newsagents I am sure, we have received plenty of stock of two new fanzines: Rob Pattinson and Taylor Lautner.  Besides the cash flow hit we have to find space for two new titles in an already crowded category.

We are stepping up to the challenge by promoting these outside of the teen magazine space with stock placed with Famous, the magazine most connected with the Twilight franchise.

It is interesting to see how different publishers handle one-shots differently.  With the Justin Bieber one-shot we got the chance to set out supply quantity whereas with these fanzines we did not.  By getting to set our supply quantity we accept more of a stake in the success of the title.

I really wish more publishers would develop a pull model with newsagents instead of this out of date push model.

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magazines

ANF involved in Bill Express screen project

I am surprised to see the ANF involvemed in a project which aims to use Bill Express screens in newsagencies for advertising, especially since there is no disclosure, at this stage, of the commercial benefit for the ANF.  Given the ANF ivolvement in promoting Bill Express to newsagents from 2003 and the millions its collapse cost newsagents, I would have thought that transparency on this new project would have been a wise move.

Click here to see the fax received by newsagents from Wow-vision media network about the screens.

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Bill Express

Rudd leadership drama a lesson in new media channels

The unfolding Labor Party leadership situation last night was covered more immediately and extensively on Twitter and Facebook than on mainstream media.  While Sky News did a pretty good job, their colleagues were far behind.  Twitter an Facebook lit up with reports, rumours and commentary.  It was a delight for a political junkie, getting closer to real time coverage is more exciting.

It showed that print really is more of an analysis medium in today’s world.

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Media disruption

Promoting Better Basics with weekly magazines

better-basics.JPGBetter Basics did very well for us last time it was out by placement with our weekly magazines as well as with food titles.  So that is what we have done with the latest issue.  We have it displayed on the flat between Woman’s Day and Famous as well as on the flat in our food section.

This weekend, we are planning a Better Basics and Better Homes and Gardens dual display, probably at the counter – to encourage people to buy both titles together.  This makes sense since they are related titles.

Better Basics is a title which will respond to tactical placement.  That is, placement next to a popular title outside of the food area.  Hence our placement with the weeklies.  It would work just as well next to newspapers or even Australian Women’s Weekly in the first week of the on-sale.

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magazines

Selling Justin Bieber

justin-beiber-magazine.JPGWe have Justin Forever, the Justin Bieber magazine which went on sale yesterday displayed with our teen magazines.

If we can get more stock, yes we only received five copies, we will promote Justin Forever more prominently out the front of the store.  I am sure we can achieve good sales from girls in the mall who may not usually venture into our newsagency.  It helps that his song is on high rotation on our in-store radio.

This is also a title to display with the weeklies since mum may buy it for a daughter.

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magazines

Promoting Girlfriend magazine

girlfriend-jun2010.JPGWe are promoting the latest issue of Girlfriend with an in-location display.  We plan to supplement this with a display at the counter for the weekend.  Co0location works well for Girlfriend.   Displaying the stock was a bit of a challenge thanks to the nail polish kit – it is not friendly to traditional magazine fixturing.

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magazines
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